Grid parity for renewables ‘will happen before 2025’

That’s the prediction from business services firm Lloyd’s Register, which suggests decentralised solar power will be cheaper than electricity from the grid by as early as 2022, followed by wind in 2024.

These tipping points towards a decarbonised energy system are expected to first occur in China and Germany respectively.

The report, which is based on a survey of 792 executives working in the renewable energy sector, suggests a decisive, mainstream tilt in the energy balance will take longer.

It expects clean power sources to surpass fossil fuels in countries’ energy mixes in Europe and North America by 2025, in the Middle East by 2028 and in Asia Pacific and Africa around 2033.

The survey results suggest improvements in grid connection, transmission and storage are needed before this can happen.